Month’s Theme: A notable reversal to the downside that stands out on a one-year scale and an important peak or crest.
Behavior Around the High: A lot of price change around the high.
Behavior Around the Low: An important technical price level highlighted around the low. Volume and volatility will flatten out.
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An opportunity to open a long position in the midst of a decline on the 1st. You could close that at a peak on the 5th.
A brief peak on the 1st offers an opportunity to open a short position. You could close that on the 6th.
An opportunity to open a long position in a trough on the 8th.
A high midday on the 8th offers an opportunity to open a partial short position. If we open at a high on the 11th, you could add to that position and close on the 12th, and if we open at a low you could close it.
An opportunity to open a short position on the 18th and close it at a low that’s either on the 19th or 20th.
An opportunity to open a long position after a decline through multiple support levels on the 26th. You could close that at a peak on the 27th.
An opportunity to open a short position at a peak or crest on the 27th. You could close that after a decline on the 28th. You could also open a long position in the midst of that decline.
Overview
On the 1st, there’s a decline followed by a prominent move higher through key resistance on a multi-day scale. That move higher offers an opportunity to open a short position. We’ll stay above it briefly and then break back down through the same price level shortly thereafter. I would open a long position in the midst of that decline. There’s a gap up over the weekend into the 4th.
There’s a peak early on the 4th that we’ll have a significant decline standing out on at least a one-day chart. On the 5th, we’ll likely have a peak that offers an opportunity to close the long position. We’ll decline off of that peak into a low on the 6th. There’s likely a lowest low on the 6th that offers an opportunity to close the short position from the 1st. From there, we’ll have a significant move higher. On the 7th, we’ll have bullish price swings. On the 8th, there’s a trough in the morning that offers an opportunity to open a long position. We’ll have an important technical price level acting as resistance midday. That high offers an opportunity to open a partial short position. We’ll poke through that price level temporarily and then decline pretty notably into the end of the day.
If we open higher on the 11th, you could add to the previous short position, and if we open lower you could close it. If you added, you could close it on the 12th. On the 12th, there’s a move higher that will stand out on a multi-day scale and then we’ll rotate sideways successfully turning resistance into support. On the 13th, we’ll have a breakout in a period of volatility taking us to the previous highest high. On the 14th, we’ll bounce along support and then break down through multiple support levels. There’s a fast, sudden move higher into a peak toward the end of the day followed by a breakdown into the 15th. There’s an S-shaped formation within a channel on the 15th.
On the 18th, I’m advised not to do anything too impulsive, however there may be a move to the upside that offers an opportunity to open a short position. There’s a lowest low either on the 19th or the 20th where you could close that short position. There’s a peak on the cusp of the 19th/20th and a trough midday on the 20th. The 21st is a mixed day where we may be bound within a range. On the 22nd, there’s an important price level and a prominent peak or crest on a one-month chart. You should be able to position yourself in both directions.
The market is closed on the 25th. On the 26th, there’s a significant peak or crest that we’ll decline off of pretty notably through multiple support levels. That decline offers an opportunity to open a long position. On the 27th, there’s a move higher into a peak or crest midday where you could close the long position. There’s an opportunity to open a short position at that peak. That’s followed by a full retracement back down. On the 28th, there’s a significant decline where you could close the short position and open a long position. There’s a rally into a brief peak at the end of the day on the 28th or on the 29th.
Sneak Preview
A breakout on a multi-day scale in January.